Name: KGRN Chartered Accountants
Brand: KGRN
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The main significance behind the VAT registration in Abu Dhabi is the prototype to raise the financial system of the nation like all other countries. Examining the tax records, documentations and the return files of a person to check their proper tax history is termed as ‘audit’. The FTA- Federal Tax Authority processes the audit checklists. However, the business person’s documentation will be checked and verified which is filed against the VAT or FTA returns. A tax audit is, indeed, the assessment of the business person’s title role as a taxable system by the government.

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To begin, the primary goal of the audit is to ensure that the tax liability is correctly filed and collected. Meanwhile, VAT registration in Abu Dhabi ensures that details are detailed and declared based on eligibility. It will be difficult for business owners to accumulate transactions in order to file their VAT returns. It forces you to avoid risky deadlines that will inevitably result in noncompliance. Tax accounting software will play a significant role in businesspeople’s enormous success.

How to get ready for the audit?

The company must adhere to all the taxes
The process must be adapted
Records must be maintained perfectly
VAT returns must be filed inappropriate manner

What all you must know about the FTA Tax Audit in UAE?

Firstly, as a part of the internal process and guidelines, the audit is carried on in the UAE.
The audit is conducted either in the office campus or at the FTA (the FTA requests the business person to bring down all the documents to the office or send it electronically
An Audit may, indeed, include processing and scrutinizing the tax records of the company. Meanwhile, in UAE, if the data is stored even remotely, the law requires to process all the financial systems of the businessmen.
The FTA will send a notice 5 days or a week prior to the audit.
During the audit, the auditor will check a few documents and make sure everything is right
The audit takes place only during the FTA work hours. Indeed, there may be some exceptional cases that auditors of the FTA may audit over hours with the Director General’s permission
The company or business place will need to make sure that all the assistants and other officials whose presence is needed for the audit
At the end of the audit, final reports will be given by the FTA which will include any mistakes found. Penalties may be charged accordingly. However, if needed, re-audit can be conducted with any suspects in the audit.

The detailed process in the FTA:

To begin, the FTA audit is preceded by gathering all information and documents from a specific business person. This file will be referred to as the audit file. The audit file should, in fact, be in the FAF file format, as requested by FTA officials. At the invoice level, the FAF format should be produced. At the end of the audit, auditors determine whether a company is following tax laws and processes such as VAT correctly. Furthermore, VAT registration in Abu Dhabi is always perfect and well-known.

The following are the information needed to be submitted:

Information about the company:

Name
Registration Number- TRN
Name of the tax agency
Tax Agency Number- TAN
Name of the tax agent
Tax Agent Approval Number- TAAN

Details about the customer and supplier:

Customer and supplier’s location. i.e., UAE
TRN number may be needed if required
Tax codes like the ZR for zero-rated supplies should be submitted. Subsequently, this will help to identify the nature of the supply.

Transactions Details:

The FTA audit checklist should be submitted in the FAF format and include the details such as invoice number, date, value, VAT amount should be mentioned.

Why KGRN?

In Dubai, we are a multi-purpose accounting firm connected all over the world.
KGRN is a common and trustworthy platform for all taxation services and accountings
We are registered duly licensed and are well known for the VAT registrations in Abu Dhabi
All the expert and legal VAT consultants in Mussafah are a part of KGRN
We will guide you throughout the process
No hidden charges will be charged
Thousands of happy and satisfied customers
On-time delivery
We provide instant updates about the process and guide you throughout the process

For enquires call @ +971 45 570 204 / Email Us : [email protected]

FAQs:

1. What is a Tax Audit?

It is conducted by the FTA. Tax audit means examining the financial records and documentation for a company or business place.

2. How to file VAT returns in the UAE?

Any taxable person in the UAE can file its VAT return through the online portal in the FTA website

3. What Can You Do to Be Prepared for the Audit?

Stay organized so that anytime an audit will be conducted. All this can be done by tax consultants in order to skip stress and worries

4. What does the tax consultant review about the VAT Returns?

A tax consultant will review the VAT returns that are filed by the companies. It makes sure that all the required information is filed properly without any flaws.

5. What is meant by VAT return filing?

At the end of the duration, every taxable person must submit the VAT return files to the FTA.

To demonstrate the VAT liability, a VAT return encapsulates the value of the supplies and purchases a taxable person has made during the period of tax payment.

6. What is meant by the liability of VAT?

The difference between the output tax paid during a given tax period and the input tax during the same tax period is called the liability of the VAT. Here the output tax will be more than the input tax. However, the liability of the VTA is paid to the FTA.

7. When does a business require filing VAT returns?

Taxable businesses should file VAT returns in the FTA on a regular basis, within 28 days of the end of the tax duration or tax period.

8. What is the tax period?

A tax period means the duration of time for which the taxes are paid